U.S. Stock markets closed higher on Tuesday, marking the industry's second solid performance in a row after the group's strong sell-off last week.
While most of the focus was on the mega-cap & # 39; FANGMANT & # 39; stocks, which include Facebook (NASDAQ :), Apple (NASDAQ :), Netflix (NASDAQ :), Google (NASDAQ :), Microsoft (NASDAQ) :), Amazon (NASDAQ :), NVIDIA (NASDAQ 🙂 and Tesla (NASDAQ :), there are more than a few attractive names that deliver even higher returns.
Here are three to consider as the industry recovers from its recent sell-off:
1. Pinterest
Pinterest (NYSE 🙂 has seen its stock has significantly outperformed the broader market in recent months, rebounding more than 270% from its March low as investors have become increasingly optimistic about social media sharing. media platform.
The stock finished Tuesday at $ 37.61, pulling back to its all-time high of $ 39.63 touched on September 2, giving the San Francisco-based company a market cap of about $ 20.8 billion. achieved.
The social media company's second quarter results – released in late July – estimates as people around the world flocked to the highly visual platform during the COVID-19 pandemic amid government-imposed lockdown. measures. Pinterest reported that its global monthly active users grew 39% year over year to 416 million in the past quarter.
"People needed Pinterest in the second quarter," the company stated in its earnings report.
“They needed a service that would help them adapt to radically changed circumstances – one that inspired them to cook at home, plant vegetable gardens, plan activities for their children and set up remote offices and home gyms, just to name a few. COVID-19-related use cases seen during the quarter. "
In a sign that bode well for the future, the company disclosed that people who started using Pinterest during COVID-19 still continued to have a high level of engagement even after lockdown measures were relaxed, saying :
"In fact, new users in the COVID-19 cohort are currently more involved than a cohort of new users in the same period last year."
Pinterest is scheduled to report the following financial results before the opening bell Friday, October 30. The consensus calls for earnings per share (EPS) of $ 0.03, while sales are expected to increase 34% from the same period a year earlier to $ 375 million.
2. NetEase
NetEase (NASDAQ :), which develops and operates popular PC and mobile games in China, is one of the largest video game companies in the world. In addition to gaming, NetEase offers various internet services such as music streaming, online education, e-commerce and advertising.
The Hangzhou, China-based video game publisher has seen its stock rise by about 80% since it bottomed out in March. The stock, which hit a record high of $ 517.49 on August 27, closed at $ 477.48 yesterday, earning the Chinese tech giant a market cap of about $ 64.3 billion.
The most recent earnings report, published Aug. 13, indicates Wall Street's goals for the second quarter. Earnings per share increased 32% from the same period last year to $ 5.64, past expectations for earnings of $ 4.58 per share. Revenue, meanwhile, was up 26% year-on-year to $ 2.57 billion, compared to forecasts for revenue of $ 2.45 billion.
"We saw healthy profits in our business in the second quarter," said Chief Executive William Ding in the company's press release. “Strong performance from our online game services and NetEase Cloud Music drove the growth,” he added.
NetEase is expected to publish its third quarter results on Thursday, November 12, before markets open. According to consensus estimates, the Chinese internet technology company is expected to make a profit of $ 3.93 per share, while sales are expected to increase 25% from the same period a year ago to $ 2.63 billion.
3. Lattice
Lattice's stock (NASDAQ 🙂 has more than doubled since they hit a low in mid-March. bear market, up 115% as it benefits from strong demand for its 5G, artificial intelligence and server security businesses.
Shares came in at $ 29.14 last night, giving the Hillsboro, Oregon-based field-programmable gate arrays (FPGAs) manufacturer a market cap of nearly $ 4 billion.
Lattice Semiconductor Daily
The number of shares soared to the highest level since September 18, 2000 last month after the tiny chip designer hit second quarter earnings and those earnings.
“Despite the challenging environment created by COVID-19,” said Jim Anderson, the company's CEO, “growth was led by the strength in communications and computing, where we see both consecutive and year-over-year growth. saw in 5G, "servers and client computing." "
Lattice – which ranks third in global FPGA device market share – is scheduled to report the following results on Tuesday, October 27, after the closing bell. The consensus calls for earnings per share of $ 0.15 per share for the third quarter, compared to earnings of $ 0.17 per share in the same period a year ago. Sales are expected to decline nearly 4% year on year to $ 99.7 million.
The chipmaker said it expects third-quarter revenues to be between $ 96 million and $ 106 million.
